Contents
Market review
The last seven days have been volatile, with markets caught between renewed doubts over the durability of the AI investment boom and a macro backdrop that refuses to become more accommodating. Last week’s sharp technology sell-off pushed the Nasdaq into correction territory as investors questioned increasingly debt- and capex-heavy AI infrastructure spending. The mood improved markedly this week, however, with the S&P 500 rallying 2.35% on Monday and another 1.31% on Wednesday. CoreWeave provided the most important fundamental reassurance: revenues jumped 168%, guidance was raised and management outlined a route to adjusted profitability in 2028, triggering a roughly 20% share-price rebound and dragging the wider AI complex higher.
The macro picture was less forgiving, October US headline CPI inflation rose 0.4% month-on-month, while core inflation increased 0.3%. Shelter, food and energy all contributed to the upside, reinforcing the message that inflation remains sufficiently sticky to keep the Federal Reserve firmly on guard. Markets consequently moved towards fully pricing another December rate increase. Yields across maturities jumped and the dollar reached a 19-month high, reminding investors that persistent inflation has yet to dissipate.
AI nevertheless remains the market’s dominant battleground. Anthropic pushed ahead with an extraordinarily ambitious IPO that could value the business at around $1.4 trillion, providing another test of investors’ willingness to capitalise future AI revenues today. For context, the Nasdaq is still up 13% for the year even after the angst seen so far this quarter. Nvidia, meanwhile, added considerable company-specific volatility to an already nervous sector.
Oil has provided the other important release valve. Crude retreated as fears of renewed US-Iran escalation eased and Middle-Eastern supply recovered, helping equities rebound by taking some pressure off the inflation narrative.
Outlook
The broader backdrop remains constructive, but near-term dynamics are increasingly driven by central bank policy changes and the resilience of corporate fundamentals. Markets remain reactive to geopolitical flare-ups, the potential for inflation tail risks and execution of the AI megatrend. More hawkish policy responses, particularly from the Fed, may tighten financial conditions and drive intermittent volatility. Encouragingly, structural growth drivers remain intact, with earnings expectations broadly resilient and corporate balance sheets holding up despite a renewed focus on funding costs in lieu of a higher interest rate environment.
This week’s headlines have been dominated by sudden leadership turmoil at Nvidia, following the abrupt resignation of long-serving CEO Jensen Huang and the resulting sharp swings across mega-cap US technology stocks. While high-profile developments at companies like Nvidia and Microsoft naturally capture investor attention, periods of concentrated market volatility serve as a timely reminder of why we avoid overexposure to any single company, sector or region.
The first phase of the artificial intelligence cycle was largely driven by a narrow group of large US tech stocks. While these businesses remain central to the theme, relying solely of a handful of market leaders introduces significant concentration risk. Transformational technologies rarely create value in just one place. As the AI story progresses from initial investment toward broader adoption and real-world productivity gains, future winners are increasingly likely to emerge across a much wider ecosystem, spanning infrastructure providers, utilities, industrial businesses, software developers and companies successfully applying AI to enhance their operations.
For investors in diversified multi-asset portfolios, this reinforces the value of a balanced long-term approach. Rather than chasing short-term momentum or becoming overly reliant on US mega-cap equities, our strategy spreads risk across global regions, diverse sectors, and both public and private markets. By staying disciplined on valuation and maintaining broad exposure across asset classes, our portfolios are designed to capture long-term structural growth themes while cushioning investors against the inevitable shocks of single-stock volatility.
Movers table
|
Equities |
1 Week |
YTD |
1 Year |
|---|---|---|---|
|
S&P 500 |
2.94% |
11.98% |
14.00% |
|
FTSE 100 |
1.85% |
12.49% |
14.13% |
|
Euro Stoxx 50 |
3.40% |
12.41% |
13.55% |
|
MSCI Asia Pacific ex Japan |
3.45% |
13.88% |
13.30% |
|
MSCI China |
-2.92% |
-16.16% |
-21.75% |
Source: Bloomberg as at 08:56am on 13/11/2026.
This content has been prepared by Life Investment Office (LIO) for information purposes only and does not contain or constitute investment advice. Information provided herein has been obtained from sources that LIO believes to be reliable and accurate at the time of issue but no representation or warranty is made as to its fairness, accuracy, or completeness. The views expressed herein are subject to change without notice. Neither LIO, nor any of its associates, nor any director, or employee accepts any liability for any loss arising directly or indirectly from any use of this document. The value of investments and any income from them may go down as well as up and are not guaranteed. Investors may get back less than the original amount invested and past performance information is not a guide to future performance.
‘M&G Life Investment Office (LIO)’ includes the team formerly known as Prudential Portfolio Management Group (PPMG), Prudential Portfolio Management Group Limited, is registered in England and Wales, registered number 2448335.
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